J.P. Morgan Maintains Overweight Rating On Hewlett-Packard

According to J.P. Morgan, Hewlett-Packard HPQ Overweight rating is reiterated. J.P. Morgan said that it is adjusting its estimates for Overweight-rated Hewlett-Packard. “In our revised model, lower revenues are partially countered by mix-driven gross margin support and increased share buyback assumptions. While the top-line reset is a disappointment, we believe the stock has more than adjusted. In our view, the stock's low-relative valuation, based on price-to-earnings multiple, suggests that a series of downward revenue resets is on the way, alongside a disruptive acquisition or two. We think the floor is almost set, making for an attractive risk-reward profile for long-term investors.” Hewlett-Packard closed yesterday at $40.88.